By Dr. Sarah McLaughlin
Behavioral & Socioeconomic Insights Contributor
Lower levels of financial planning amongst women compared to men should not be understood as gaps in confidence or capability alone. Instead, they reflect how society has historically socialised women and men into different financial roles.
St James Place published its Women and Wealth 2026 report this week, providing a snapshot of gendered financial behaviour. As one of the largest wealth managers in the UK, St James Place is an influential voice on the future of wealth and financial advice. In a global context, and for US advisors watching the future of wealth management closely, SJP’s research contributes to broader conversations about the future of advice.
This week’s report, based on a major UK survey, revealed men and women engage with financial planning and investing differently. We know this trend. But if we look beyond individual behaviour, we may take a little more away from this report. The data also shows that we are all shaped by the same social structures.
Men are more likely to take the lead on financial decisions, such as investments (53% vs 34%) and retirement plans (48% vs 32%), and they tend to invest more (42% vs 27%). They also say they are more confident in these areas. Women lead on day-to-day household budgets and are less likely to take financial advice. But this is not a story of individual aptitude or confidence.
What social forces are shaping the patterns we see?
What we are seeing here is the result of socialisation and social expectations about roles and responsibilities. Men have more often been positioned as the “long-term financial planners” within households and across wider culture. That positioning brings greater exposure to investment choices, more opportunities to practice, and reinforcement from social norms.
Even in movies and TV, we continually receive the message that men and women are more suited to certain types of careers, family roles, and levels of knowledge in business and money matters. In other words, confidence and engagement are learnt through what and who we see and hear around us.
The Hidden Division of Financial Labour
This isn’t about blaming anyone. These patterns are like shared traditions in society. For example, until recently, women were often expected to manage daily money matters because of the traditional view that running the household and caregiving responsibilities are female roles. This is reflected in the report, which finds that women are still more likely to lead in managing the household budget (46%) than men (39%).
Men are encouraged to focus on long-term financial planning, and have traditionally been seen as the primary breadwinner, working outside the home. These assumptions are hard to break, and this socialisation happens alongside society’s rules and biases about same-sex households, who have mostly been ignored in financial planning studies until recently.
A confidence gap without a competence gap
The report also highlights a tension between responsibility and confidence. Whilst women are deeply involved in household financial management, only 44% feel confident making investment decisions independently, compared to 63% of men. Similarly, women say they would feel less confident managing a significant financial windfall.
This is not necessarily a lack of ability. Historical patterns of exclusion from financial education, advisory relationships, and socio-cultural portrayals of financial expertise have a big impact. This produces what may be described as a confidence gap without a competence gap. For advisors, recognising this distinction is important.
We can take from this report how impactful it can be to talk through financial plans. Although women are less likely to take professional advice, those who do are nearly four times more likely to invest. And younger women are starting to think more about their long-term financial plans, which hints at a generational shift in how gendered roles are learned.
When considering the impact of socialisation, we see that confidence isn’t just something inside a person. It’s influenced by society. When someone is often seen as the decision-maker, they become more comfortable and confident, and others see them as strong and knowledgeable. But if someone isn’t usually seen that way, they might take longer to build confidence, even if they have the ability.
From Individual Behaviour to Advisory Environment
This perspective is especially helpful for financial advisors because it encourages them to consider the environment in which financial decisions are made. For example, men’s involvement in investing can be seen not just as their personal risk level, but as part of a set of social norms where investing is expected and noticeable.
When women get more involved in planning and investing, as the report shows they do when supported by advice, financial decision-making becomes more balanced and inclusive.
Financial roles influence how people act, how confident they feel, and the results they achieve. The aim is not to change individuals but to improve the environments, conversations, and expectations surrounding financial decision-making. This way, all clients can be equally supported in managing every aspect of their financial lives.
The patterns identified in the Women and Wealth 2026 report remind us that financial decision-making does not happen in a vacuum. Confidence grows through exposure, participation, and encouragement.
Financial engagement is not simply a matter of individual confidence or capability. It is shaped by the roles and experiences that society has historically assigned to women and men.
